Presented by the UCLA Undergraduate Investment Society
Balance Sheet
Income Statement
Statement of Cashflow
Statement of Owners/Shareholders Equity
Recall…
We use Financial Ratios to Analyze
the Statements of Companies
Let’s Get Going
We are going to look at 6 Companies
3 from the
Retail
Industry
3 from the
Pharmaceutical
Industry
Retail Industry
Maidenforms Brands Inc. (MFB)
True Religion Apparel Inc. (TRLG)
Jones Group Inc. (JNY)
Maidenforms Band Inc. MFB
Maidenform Brands, Inc. is a global intimate apparel company
that designs, sources and markets a range of intimate
apparel products, including bras, panties and shapewear. As
of December 31, 2011, the Company operated 74 outlet
stores. In addition, the Company sells products, such as
sleepwear, bra accessories and girls bras under the
Maidenform label, which it purchases from its licensees and
other third-party vendors. It operates in two segments:
wholesale and retail.
Balance Sheet
Income Statement
Cash Flows
Ratios
Liquidity/Financial
Health
2008-12 2009-12 2010-12 2011-12
Latest
Qtr
Current Ratio
3.31
3.19
3.87
4.12
4.29
Quick Ratio
1.58
1.81
1.96
1.9
2.19
Financial Leverage
2.49
2.15
1.85
1.77
1.72
Debt/Equity
0.73
0.52
0.36
0.3
0.28
More Ratios
Profitability
2008-12
2009-12
2010-12
2011-12
Return on Assets %
8.56
11.26
12.71
8.87
Financial Leverage
(Average)
2.49
2.15
1.85
1.77
Return on Equity %
22.55
25.83
25.33
16.04
Return on Invested
Capital %
12.44
16.01
17.59
12
True Religion Apparel Inc. (TRLG)
True Religion Apparel, Inc. (True Religion) designs, markets,
sells and distributes premium fashion apparel, centered on
its core denim products using the brand name True Religion
Brand Jeans. The Company operates in four segments: U.S.
Consumer Direct, International, U.S. Wholesale and Core
Services. The Company’s products are distributed through
multiple wholesale and retail segments on six continents,
including North America, Europe, Asia, Australia, Africa and
South America.
Balance Sheet
Income Statement
Cash Flows
Ratios
Liquidity/Financial
Health
2008-12 2009-12 2010-12 2011-12
Latest
Qtr
Current Ratio
7.09
8.79
7.74
7.35
7.8
Quick Ratio
5.13
6.44
5.78
5.48
5.47
Financial Leverage
1.17
1.16
1.19
1.2
1.18
—
—
—
—
—
Debt/Equity
More Ratios
Profitability
2008-12
2009-12
2010-12
2011-12
Return on Assets %
31.73
23.89
16.55
13.71
Financial Leverage
(Average)
1.17
1.16
1.19
1.2
Return on Equity %
37.37
27.83
19.47
16.39
Return on Invested
Capital %
37.37
27.83
19.47
16.39
Jones Group Inc. (JNY)
The Jones Group Inc. (Jones) is a global designer,
marketer and wholesaler of over 35 brands across
five divisions: apparel, footwear, jeans wear, jewelry
and handbags. Jones also markets directly to
consumers through its branded specialty retail and
outlet stores and through its e-commerce sites. Its
operations consist of six segments: domestic
wholesale sportswear, domestic wholesale
jeanswear, domestic wholesale footwear and
accessories, domestic retail, international wholesale
and international retail. On June 2, 2011, the
Company acquired 100% of the equity interests in
KG Group Holdings Limited.
Balance Sheet
Income Statement
Cash Flows
Ratios
Liquidity/Financial
2008-12 2009-12 2010-12 2011-12
Health
Latest
Qtr
Current Ratio
2.13
3.29
2.94
1.99
1.96
Quick Ratio
1.16
1.96
1.47
1.01
1.02
Financial Leverage
2.05
1.85
2.05
2.49
2.52
Debt/Equity
0.45
0.48
0.47
0.78
0.8
More Ratios
Profitability
2008-12
2009-12
2010-12
2011-12
Return on Assets %
-27.03
-3.89
2.47
2.01
Financial Leverage
(Average)
2.05
1.85
2.05
2.49
Return on Equity %
-48.15
-7.61
4.82
4.55
Return on Invested
Capital %
-32.27
-4.83
3.26
2.8
Retail Industry
Sequenom, Inc. (SQNM)
Affymetrix, Inc. (AFFX)
MAKO Surgical Corp. (MAKO)
Sequenom, Inc. (SQNM)
Sequenom, Inc. (Sequenom) is a molecular diagnostic
testing and genetics analysis company committed to
providing molecular diagnostic testing services, and
research use only products, services, applications,
and genetic analysis products that translate the
results of genomic science into solutions for
biomedical research, translational research,
molecular medicine applications, and agricultural,
livestock, and other areas of research. The Company
operates in two segments: Molecular Diagnostics
(including Sequenom Center for Molecular Medicine,
LLC, or Sequenom CMM) and Genetic Analysis
Balance Sheet
Income Statement
Cash Flows
Ratios
Liquidity/Financia
2002-12
l Health
2003-12
2004-12
2005-12
2006-12
Current Ratio
3.95
3.36
3.19
1.52
3.2
Quick Ratio
3.36
2.63
2.39
0.8
2.77
Financial Leverage
1.41
1.46
1.54
2.08
1.57
Debt/Equity
0.09
0.08
0.12
—
—
More Ratios
Profitability
Tax Rate %
2002-12 2003-12 2004-12 2005-12 2006-12
—
—
—
—
—
Net Margin %
-666
-121.25
-154.24
-136.64
-61.68
Asset Turnover
(Average)
0.12
0.23
0.27
0.47
0.89
-81.82
-28.49
-42.38
-64
-54.66
Return on
Assets %
Affymetrix, Inc. (AFFX)
Affymetrix, Inc. (Affymetrix) is engaged in the
development, manufacture, sale and service of
consumables and systems for genetic analysis in the
life sciences and clinical healthcare markets. The
Company sells its products directly to
pharmaceutical, biotechnology, agrichemical,
diagnostics and consumer products companies, as
well as academic research centers, government
research laboratories, private foundation laboratories
and clinical reference laboratories in North America
and Europe. In June 2012, the Company acquired
eBioscience Holding Company, Inc.
Balance Sheet
Income Statement
Cash Flows
Ratios
Liquidity/
2008-12 2009-12 2010-12 2011-12 Latest Qtr
Financial Health
Current Ratio
6.34
5.82
3.9
5.76
2.77
Quick Ratio
5.42
4.8
2.81
4.65
1.15
Financial
Leverage
2.35
2.12
1.57
1.59
1.92
Debt/Equity
1.04
0.83
0.33
0.35
0.6
More Ratios
Profitability
2008-12
2009-12
2010-12
2011-12
Return on Assets
%
-33.34
-3.56
-1.87
-6.27
Financial Leverage
(Average)
2.35
2.12
1.57
1.59
Return on Equity
%
-68.27
-7.95
-3.46
-9.91
Return on
Invested Capital %
-37.22
-4.1
-2.19
-7.42
MAKO Surgical Corp. (MAKO)
MAKO Surgical Corp. (MAKO) is a medical device
company that markets its robotic arm solution and
orthopedic implants for orthopedic procedures called
MAKOplasty. The Company offers MAKOplasty, a
surgical solution that enables orthopedic surgeons to
treat patient specific, osteoarthritic disease.
MAKOplasty is performed using its RIO Robotic Arm
Interactive Orthopedic system (RIO).. During the year
ended December 31, 2011, a total of 48 RIO systems
were sold worldwide.
Balance Sheet
Income Statement
Cash Flows
Ratios
Liquidity/
Financial Health
2008-12
2009-12
2010-12
2011-12 Latest Qtr
Current Ratio
3.92
9.54
6.37
3.38
3.37
Quick Ratio
3.33
8.25
5.6
2.59
1.98
Financial
Leverage
1.3
1.09
1.13
1.27
1.29
Debt/Equity
—
—
—
—
—
More Ratios
Profitability
2008-12
2009-12
2010-12
2011-12
Return on Assets
%
-64.99
-36.66
-32.76
-27.29
Financial Leverage
(Average)
1.3
1.09
1.13
1.27
Return on Equity
%
-317.64
-43.26
-36.4
-32.53
Return on
Invested Capital
%
-317.64
-43.26
-36.4
-32.53
Now its time to practice!